Core quantities
instrument decision for Ethiopia: compare the exact symbol by contract size, cash value per price move, trading hours, spread or commission, margin, holding cost and recent volatility before choosing exposure.
| Metric | Formula |
|---|---|
| Equity | Balance + floating P/L |
| Free margin | Equity − used margin |
| Margin level | Equity ÷ margin ×100% |
| Market loss | Contract × volume × price move |
| Complete loss | Market loss + all costs |
Market models
Forex often uses leverage-based calculations; BTCUSD has a fixed percentage; XAUUSD can use a leverage range and HMR. Do not apply one formula to every group.
Three scenarios
- Normal margin at intended exposure.
- HMR or fixed stressed requirement.
- Adverse P/L plus widened costs and holding.
Fair comparison
Keep cash exposure or cash-per-1% move constant. Comparing one lot of gold with one lot of BTC is meaningless because contracts differ.
Withdrawal link
A withdrawal changes equity and free margin, not the contract. Recalculate every open market under the post-withdrawal stress state.
Reject gate
Reject when minimum valid volume exceeds cash risk, HMR consumes the buffer or correlated open positions breach portfolio exposure.
Frequently asked questions
Is margin the loss cap?
No. Confirm the exact symbol, contract, cost and current account condition before applying this answer in Ethiopia.
Can one formula cover all symbols?
No. Confirm the exact symbol, contract, cost and current account condition before applying this answer in Ethiopia.
How should markets be compared?
At normalised cash exposure. Confirm the exact symbol, contract, cost and current account condition before applying this answer in Ethiopia.
What does HMR change?
Required collateral during specified periods.